UCG United Carpets Group Plc

RNS No 6364j
UNITED CARRIERS GROUP PLC
14th January 1998


UNITED CARRIERS GROUP PLC

TRADING STATEMENT

United Carriers Group now has trading performance data for the period leading
up to Christmas.  While it is too early to be precise as to the final figure
for the year, at this stage, we believe that the Group's profit before
taxation is likely to be only slightly ahead of last year which is
substantially below market estimates.

This is very disappointing, especially in view of the excellent progress made
over the previous two years, and is directly attributable to two factors in
the Group's largest division.  The first was the loss of a major contract
towards the end of the year which was bid away from us on terms we were unable
to match, a reflection of the highly competitive market.  This loss had an
immediate effect on revenue and profits.  We also experienced in the peak
trading period before Christmas, a growth in next day traffic which was
substantially ahead of our operational plans.  This change to the product mix
resulted in an immediate increase in our costs.  Despite the short-term
negative impact on profit, this increase in next day traffic will ultimately
prove beneficial.  It is for this reason that it is intended to accelerate the
already planned and agreed programme of restructuring and development in order
to position the Company, not only to take advantage of change in customer
demands, but also to ensure that in future years the busy trading period in
the lead up to Christmas is less critical to our results.

Taking account of the Group's performance in the last quarter of 1997 and the
restructuring costs likely to be incurred in the first half of 1998, the Board
expects that the first half of 1998 will be approximately break-even with the
benefits of the restructuring beginning to be felt in the second half.
The Group's financial position remains strong with a sound balance sheet and
an asset value of 78 pence per share.  It is anticipated that the final
dividend for 1997 will be 1.8p, the same level as the final dividend for 1996.

Enquiries:    Doug Rogers, Chairman        -        0836 512724
              John Toyne, Chief Executive  -        01933 440400
              United Carriers Group plc

              Nick Lyon                    -        0171 796 4133
              Hudson Sandler Limited


END

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